One of the last large tracts of developable land on the Peninsula could become a major shopping and commercial district under a plan being proposed by the land's owner.

The Brisbane property known as the Baylands includes a former landfill, rail yards and lock factory on 540 acres just west of Highway 101. It is contaminated with toxic chemicals and has sat vacant for years while various proposals, including a golf course and water park, have been floated and discarded.

The owner of the land, Universal Paragon Corp., submitted an application and a $50,000 deposit with the city Friday to start the approval process for a planned 1 million square feet of commercial and retail space on a 330-acre chunk of the property.

Possible uses include shopping centers, offices, auto malls and hotels. The project will not include housing because the site is too contaminated for people to live there. About one-quarter of the land would be set aside for open space.

But cleaning up the property to make it safe enough for even commercial use won't be cheap. The company has already spent $20 million on cleanup efforts and expects to spend another $20 million more, Universal Paragon spokesman Bill Chiang said Wednesday.

Brisbane officials are cautiously optimistic about the proposal, which will be the subject of a lengthy environmental review and several public hearings before it comes up for approval.

"I think there are great potential benefits to mitigating of contamination in the Baylands,'' said Mayor Michael Barnes, adding that more usable parkland and open space wouldn't hurt, either.

Still, he said, there are worries that big-box retailers and chain stores may conflict with the character of the small town. The City Council has formed a committee to look into those issues.

Chiang said the project would be a boon to Brisbane and the surrounding area by cleaning up a health hazard and eyesore and creating jobs and open space. And, he said, the property -- which was created by filling in part of the bay -- would be partly restored to wetlands.

City Manager Clay Holstine said the city plans to hire an outside expert at the landowner's expense to make sure cleanup efforts are adequate. Brisbane will also require Universal Paragon to pay for additional staffers in the planning department to handle the project.

The plan will be presented to the City Council on Monday, and Holstine said the panel expects to hold its first public hearing on the proposal in January. Copies of the 193-page application will also be available to the public on CD-ROM.

"There are going to be multiple opportunities for residents of Brisbane to participate,'' Holstine said.